April 5th 2025.
Recently, two companies have decided to take legal action against Saint Augustine's University due to unpaid bills. As reported by WRAL News, the lawsuits were filed just two weeks apart, with a combined total of over $18 million in unpaid fees. This comes during a difficult time for the university, as it recently lost its accreditation with the Southern Association of Colleges and Schools Commission on Colleges for failing to demonstrate proper financial stability and oversight.
Back in late 2022, the commission had placed the university on probation after discovering significant financial issues, including a staggering $32 million in debts and nearly $10 million in tax liens from the IRS. One of the companies, SBA, a wireless company, claims that the university failed to uphold their agreement after just one year of working together. In response, SBA is seeking payment for an early termination fee of nearly $17 million, plus interest.
Interestingly, it was SBA's lawsuit that ultimately prompted the IT company Avaria to also take legal action against Saint Augustine's University. According to their lawsuit, the university has only paid some, but not all, of their outstanding bills dating back to 2020. Avaria is seeking payment for $448,067.33 in late bills and an additional $884,520 for the remaining balance of their contract.
Byron Saintsing, the lawyer representing Avaria, shared with WRAL News that the company is still providing services to the university despite the ongoing lawsuit. He explains, "It's a tough balance, especially when you want to support the university, but also need to protect your own financial interests. In our case, the services we provide are crucial to the university, particularly in terms of IT infrastructure. If those services were to suddenly stop, it would only worsen an already difficult situation."
It's important to note that this legal battle comes two years after the university was placed on probation, and had since received financial backing from 50 Plus 1 Sports, a Black-owned development company. As previously reported by BLACK ENTERPRISE, 50 Plus 1 Sports had offered to invest $70 million into the university, allowing it to become self-sufficient while retaining ownership of its land. The agreement also prioritized paying off debt and making necessary campus improvements, all while ensuring the university's financial stability.
However, despite these efforts, the commission ultimately rejected the deal. As Saint Augustine's University continues to fight for its future, they are calling upon alumni, corporate partners, and the broader HBCU community for support. BLACK ENTERPRISE reached out to the university for comment but has yet to receive a response.
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